Monday, August 4, 2008

Charity Navigator's 2008 CEO Compensation Study is Complete

Even though some our users have clearly expressed their discontent with the compensation CEOs of their favorite charities receive, Charity Navigator’s 2008 CEO study indicates that the average CEO compensation is roughly $149,000, and represents on average 3.32% of an organization’s overall expenses. While some donors disagree that a nonprofit CEO deserves to earn a six figure salary, we ask that you keep in mind that the charities included in this study are multi-million dollar operations. Leading one of them requires an individual that possesses both an understanding of the issues that are unique to the charity's mission as well as business and management expertise similar to that required of for-profit CEOs.

Our complete study breaks out compensation by region, type and size of the organization. In addition, we also list some of the biggest paychecks received, as well as those organizations who compensate their CEOs via an affiliate, and those who have several members of the same family on the payroll. You can review the 2008 CEO Compensation Study by clicking here.

5 comments
:

A CEO of a non-profit has more headaches and heartaches and scrutiny then a for profit organization. I volunteer for many and would NOT do their job. Just because you believe in a cause does not belie the fact a very difficult job is being done for the good of many.

Re: "Leading one of them requires an individual that possesses both an understanding of the issues that are unique to the charity's mission as well as business and management expertise similar to that required of for-profit CEOs."

Not really. It requires of them that they become adept in asking people, many of whom can scarely afford it, to give them money. Meanwhile, a host of employees and volunteers do the actual necessary work. Much as is the case with the for-profit companies. Pay isn't necessarily an indicator of performance when we get into these heights. And if donors are contributing to a specific cause, then the money should primarily go to the cause rather than the CEO. Thus, if I send money to the starving children's fund then I expect that money to be used to feed the starving, not for some strutting peacock to pocket the cash and then go and buy himself a mansion.

Links

Welcome

On this blog, professionals from Charity Navigator, the nation's largest independent charity evaluator and leading donor advocate, share their thoughts on emerging issues relating to the nonprofit sector and offer tips to help you make the most of your charitable endeavors.